Galway’s housing market is undergoing a dramatic transformation, with rising prices and the stock of available housing nationally reaching a new low. According to a national survey by Real Estate Alliance (REA ), the average cost of a second-hand three-bed semi-detached home in Galway city is expected to rise by 10 per cent in 2025. This follows a significant 10 per cent increase in 2024, bringing the current average price to €370,000—up from €337,000 in December 2023.
The situation is similarly dire across County Galway, where house prices rose by 17 per cent in 2024 to an average of €270,000. Projections for 2025 indicate another 10 per cent increase, driven by high demand and an unprecedented shortage of supply.
Kevin Burke of REA McGreal Burke highlighted the imbalance, stating, “The market remains very strong, with limited supply and very few new builds coming to the market. With interest rates reducing, we expect to see similar price increases in 2025.”
A nationwide trend with Galway at the epicentre
The REA Average House Price Index, which tracks the price of Ireland’s typical three-bed semi-detached homes, shows that western counties, including Galway, experienced price increases at twice the rate of the east coast in 2024. Homes in counties Clare, Donegal, Limerick, Mayo, Roscommon, and Sligo saw an average annual price rise of 16 per cent, compared to just 7.5 per cent in commuter counties.
Nationally, the actual selling price of a three-bed semi-detached home rose by 2.1 per cent in the last quarter of 2024 to €330,602, marking a 9 per cent annual increase. Galway city’s housing prices reflect these broader trends but at a more accelerated rate. According to the DAFT.ie House Price Report for the last three months of 2024, the price of housing has increased across all property types. For instance, the asking price for one-bedroom apartments reached €137,000 by the end of 2024, a 10 per cent increase compared to 2023, while four-bedroom bungalows saw a dramatic 16.2 per cent rise to €465,000.
Supply shortages exacerbate the crisis
The housing shortage is at a critical level, with the availability of second-hand homes hitting an all-time low. The end-of-year report regarding housing prices issued by DAFT.ie has revealed that there were fewer than 10,500 second-hand homes available for purchase nationwide on December 1, 2024—a 15 per cent drop year-on-year and the lowest recorded since tracking began in 2007. This scarcity is particularly acute in Galway, where housing stock has failed to keep up with demand.
The lack of affordable rental properties compounds the problem. This week Sinn Féin TD for Galway West, Mairéad Farrell, called the housing crisis in Galway ‘the worst’ she has seen in her decade as a public representative, emphasising a ‘non-delivery of social and affordable housing’, instead relying on the Housing Assistance Payment (HAP ) Scheme to counter the issue.
“For too long the Government has been reliant on the HAP scheme to fill the gap while they have underdelivered on social and affordable housing. In Galway, this is no longer an option.
“The Simon Community’s Locked Out report has shown that there have been no affordable rental properties advertised in Galway city and surrounds for several years. We are at the point where even the council is not succeeding in finding homes through the HAP scheme, as the County Council HAP Placefinder advised me recently that they ‘cannot find any HAP accommodation at the moment as there is a severe shortage of affordable properties.”
A call for urgent Government action
The housing crisis has led to desperate situations for many families in Galway, with reports of people overstaying in terminated tenancies, sharing overcrowded accommodations, or being forced into homelessness. Farrell stressed that addressing this crisis must be the new government’s top priority. “This situation was caused by the failure of previous governments not to deliver adequate social and affordable housing in Galway. People in Galway cannot take any more of this failure,” she said.
Looking ahead
With house prices in Galway projected to rise further in 2025, the need for immediate and decisive action has never been more urgent. Increasing the housing supply through new builds, implementing robust social housing programs, and addressing affordability are essential steps to mitigate the crisis. Without these measures, the dream of owning or renting a home in Galway may become unattainable for many, leaving families and individuals with few options and deepening the region’s housing challenges.
